McELHINNEY and GRENFELL v WIRECARD NZ LTD [2020] NZHC 2312

McELHINNEY and GRENFELL v WIRECARD NZ LTD [2020] NZHC 2312

The court granted the requested extensions because the administrators demonstrated a genuine commercial need for additional time to complete an orderly going-concern sale involving multiple overseas bidders and parallel Australian proceedings, thereby justifying extensions of the convening period to 30 October 2020 and the statutory termination period to 6 November 2020 to avoid personal liability for wages; the court also directed that the watershed creditors' meeting may be conducted by video conference given overseas creditors and COVID-19 related practicalities, subject to measures ensuring participation and publicity.

Citation
[2020] NZHC 2312
Parties
Applicant; Administrator of Wirecard NZ Limited: Conor John McElhinney; Applicant; Administrator of Wirecard NZ Limited: Andrew John Grenfell; Respondent; Company in Administration: Wirecard NZ Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 September 2020
Procedural Posture
Application Under Companies Act 1993 Part 15 a (administration) for Extensions and Directions / Judgment on Application (on the Papers) Granting Extensions and Directions
Outcome
Application granted in part: convening period extended to 30 October 2020; statutory termination period under s239Y extended to 6 November 2020; watershed creditors' meeting may be conducted by video conference subject to conditions; publicity and document access orders made; costs treated as administration expenses.
Legal Topics
Administration, Extension of Convening Period, Statutory Termination Period for Employees, Creditors' Meeting Procedures, Video Conference Meeting Directions, Administrator Liability for Wages
Companies Law Insolvency Employment Law Civil Procedure Administrative Law Administration Extension of Convening Period Statutory Termination Period for Employees +3 more

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Parties

Conor John McElhinney

Applicant; Administrator of Wirecard NZ Limited

Andrew John Grenfell

Applicant; Administrator of Wirecard NZ Limited

Wirecard NZ Limited

Respondent; Company in Administration

Procedural Posture

Application Under Companies Act 1993 Part 15 a (administration) for Extensions and Directions / Judgment on Application (on the Papers) Granting Extensions and Directions

Legal Issues

  1. 1 Whether the convening period under s239AT/s239AD should be extended
  2. 2 Whether the statutory 14-day termination period under s239Y should be extended to avoid administrators' personal liability for wages
  3. 3 Whether the watershed creditors' meeting under Part 15A may be conducted by video conference

Ratio Decidendi

The court granted the requested extensions because the administrators demonstrated a genuine commercial need for additional time to complete an orderly going-concern sale involving multiple overseas bidders and parallel Australian proceedings, thereby justifying extensions of the convening period to 30 October 2020 and the statutory termination period to 6 November 2020 to avoid personal liability for wages; the court also directed that the watershed creditors' meeting may be conducted by video conference given overseas creditors and COVID-19 related practicalities, subject to measures ensuring participation and publicity.

Court Disposition

Application granted in part: convening period extended to 30 October 2020; statutory termination period under s239Y extended to 6 November 2020; watershed creditors' meeting may be conducted by video conference subject to conditions; publicity and document access orders made; costs treated as administration expenses.

Orders

  • Convening period under s239AT/s239AD extended to 30 October 2020
  • Statutory termination period under s239Y extended to 6 November 2020